A new report from the state comptroller warns that New Yorkers’ energy bills could rise if President Donald Trump follows through on his call to pull federal support for some projects related to increasing energy efficiency and reducing the use of fossil fuels.
Since 2022, the federal government has awarded nearly $2 billion in funding to New York for projects related to curbing fossil use and saving energy, according to the report released by Comptroller Thomas DiNapoli on Friday. That funding comes from the Inflation Reduction Act, or IRA, a signature policy of the Biden administration meant to tackle climate change.
IRA funding awarded to New York helps pay for things like upgrading homes and businesses to be more energy efficient and switching out gas appliances for electric ones. Some of the funding has also been awarded to projects meant to help New York better withstand extreme weather, which is made worse by climate change.
The IRA also includes funding for tax credits to purchase solar panels and electric vehicles, which New Yorkers continue to take advantage of. New York taxpayers have filed for IRA tax credits worth $374 million, according to the comptroller’s report.
But the future of that federal funding is uncertain under Trump, who has called to end federal support for some energy-saving projects. His administration has already paused some IRA grants in New York, halting some local environmental programs and freezing funding promised to farmers in the state.
Ending IRA funding would have a wide-reaching and potentially devastating impact in New York, according to Maria Doulis, deputy comptroller for budget and policy analysis.
“This is not just money that would flow to the state and its agencies,” said Doulis. “We're also talking about money to farms, and how does that affect their ability to produce the food that we all need and rely on? We're talking about money to businesses. We're talking about money to municipal governments.”
The comptroller’s report warns that without federal support for environmental-related programs, New York will have to look elsewhere for funding to support its commitment to reduce climate-warming greenhouse gas emissions. Already, the state is behind on its plan to obtain 70% of its electricity from renewable sources like wind and solar by 2030.
Losing IRA funding would also require New York to find alternative sources of money for programs meant to help communities prepare for the effects of climate change.
Some of those costs would likely be passed down to New Yorkers, Doulis said.
“Absent this support from federal funding for rebates,” Doulis said, “if the investments are made, they will all be financed through surcharges on utility bills.”
Comptroller DiNapoli said in a statement that "preserving the IRA’s grant and tax credit programs should be a priority."
After IRA funding was initially paused in January, a federal judge ordered the government release related grants. However, some grants remain frozen. Advocacy groups have sued to release those funds.
It remains unclear what will happen to IRA funding long term.